Abstract: Based on the 2003-2009 provincial level panel data, the paper sets the panel cointegration model to conduct an empirical test to detect the relationship between Chinese people's education level, income level and sporting goods manufacturing industry. The results show that from 2003 to 2009, the national overall cultural quality is enhanced, the per capita income grows faster and the sports goods manufacturing industry develops well. There is a long-term cointegration between education level, income level and sporting goods manufacturing industry. The education level and per capita income level in most areas (regions) have the long-term positive role on the development of sporting goods industry. The per capita income level in all regions of the country influences sporting goods industry more than education level does. The citizens' education level and per capita income level influence sports goods manufacturing industry differently in different areas (regions).

Key words: education, national income, sports goods, panel data, co-integration test